Vanilla Market Continues to Rise

On top of the serious supply situation that we have seen of late, the worst tropical cyclone for 13 years, named Enawo, hit the important Vanilla-producing areas of the north east of the island back in March 2017.

In the area around Sambara, it is now estimated that 80% of the crop has been destroyed. Moreover, around Antalaha, another significant producing location, the crop was destroyed. Vanilla beans were knocked off the vines by the 140 mph (225 kph) winds and torrential and persistent rainfall. The significance of this cyclone cannot be exaggerated as it will inevitably lead to a substantially smaller and poorer quality crop given the fact that the beans were immature. Low Vanillin content for a significant proportion of the 2017 Madagascan crop is now guaranteed.

Demand for Vanilla remains paradoxically strong, but, given the soaring prices of Vanilla, buyers are paying increased attention to bespoke flavour solutions, synthetic Vanillin as well, of course, to a reduction of Vanilla in finished products. But buyers who require natural Vanillin will have no choice but to accept the ever-higher pricing from Madagascar, in the hope that the high prices will somehow reduce total worldwide demand (which seems unlikely), and that other origins such as Papua New Guinea, will come to the rescue with some much-needed supply.

On this basis, FDL have been proactive and have over the last year developed a new extraction technology enabling us to offer our customers Vanilla extracts at a much needed lower price than currently being sold on the market. The re-engineered extraction process uses a CO2 extraction technology, enabling a higher yield of extract and thus the ability to offer our customers a cheaper price per kilo.

FDL also have over 10,000 Vanilla flavourings on portfolio, so we are confident that we can assist our customers during this highly volatile period, be it an extract or a flavouring - FDL have the solution for you!

If you have any vanilla requirements, are struggling to get stock or would like further information on the market situation, please don't hesitate to get in touch directly on : Tel: +44 (0) 20 7488 0777